Restoration of Old Pension Scheme if so, the details thereof and if not, the reasons therefor along with the reasons for introducing UPS

Restoration of Old Pension Scheme if so, the details thereof and if not, the reasons therefor along with the reasons for introducing UPS: Lok Sabha Q&A

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
*STARRED QUESTION NO. *308*

ANSWERED ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)

RESTORATION OF OLD PENSION SCHEME

*308. SHRI SUDAMA PRASAD
SHRI UTKARSH VERMA MADHUR

Will the Minister of FINANCE be pleased to state:

(a) whether the Government proposes to restore the Old Pension Scheme (OPS), if so, the details thereof and if not, the reasons therefor along with the reasons for introducing UPS;
(b) whether the Government is aware about the non-feasibility of the New Pension Scheme and if so, the details thereof;
(c) the reasons for excluding unemployed son, unmarried/widowed/divorced daughter and dependent parents from the definition of family in UPS; and
(d) the reasons for the reduced pension in UPS as compared to OPS and the declaration of UPS only through a Press release?

ANSWER

THE MINISTER OF FINANCE
(SMT. NIRMALA SITHARAMAN)

(a) to (c) There is no proposal under consideration of the Government of India for restoration of Old Pension Scheme (OPS) in respect of Central Government employees covered under National Pension System (NPS). The Government had moved away from OPS due to its unsustainable fiscal liability on the Government exchequer. NPS is a defined contribution-based scheme which was introduced for Central Government employees (except armed forces) joining service on or after 01.01.2004. With a view of improving upon the pensionary benefits for such employees, a Committee was constituted under the chairpersonship of the then Finance Secretary to suggest measures to modify the NPS. Based on the deliberations of the Committee with stakeholders, Unified Pension Scheme (UPS) has been introduced as an option under NPS with the objective of providing defined benefits after retirement to the Central Government employees covered under the NPS.

The features of UPS including the definition of family have been designed in such a way so as to ensure payment of assured payouts while also maintaining fiscal sustainability of the fund. Further, the Government employees who opt for UPS under NPS shall also be eligible for option for availing benefits under the CCS (Pension) Rules, 2021 or the CCS (Extraordinary Pension) Rules, 2023, in the event of death of the Government servant during service or his discharge on the ground of invalidation or disablement.

(d) UPS has been introduced through a notification by the Government on 24.01.2025, as an option under NPS. Under UPS, assured payout is admissible on retirement @ 50% of twelve monthly average basic pay, immediately prior to retirement after a minimum 25 years of qualifying service. In case of lesser qualifying service period, proportionate payout would be admissible.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES

LOK SABHA
UNSTARRED QUESTION NO. †3454

ANSWERED ON MONDAY, 11 AUGUST, 2025/ SRAVANA 20, 1947 (SAKA)

IMPLEMENTATION OF OLD PENSION SCHEME

†3454. SHRI AMRA RAM

Will the Minister of FINANCE be pleased to state:

(a) whether the Government intends to implement old Pension Scheme, if so, the time by which the Government proposes to implement this scheme and if not, the reasons therefor;
(b) whether the Government proposes to return the corpus of New Pension Scheme to the States which have implemented old pension scheme, if so, the details thereof and if not, the reasons therefor; and
(c) the number of States which have implemented old pension scheme along with the amount of pension fund deposited with the Government by these States and the time by which the fund is likely to be returned to the States?

ANSWER

MINISTER OF STATE FOR FINANCE
(SHRI PANKAJ CHAUDHARY)

(a) There is no proposal under consideration of the Government of India for restoration of Old Pension Scheme (OPS) in respect of Central Government employees. The Government had moved away from OPS due to its unsustainable fiscal liability on the Government exchequer.

(b) & (c) The State Governments which have informed the Government/Pension Fund Regulatory and Development Authority (PFRDA) about reversion from National Pension System (NPS) to OPS and the details of pension fund under NPS as on 31.07.2025 are as below:

There is no provision under the Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013, read along with PFRDA (Exits and Withdrawals under the National Pension System) Regulations,2015, and other relevant Regulations, vide which the accumulated corpus of the subscribers towards National Pension System can be refunded and deposited back to the State Government.